Heng Tai Consumables Group Limited (00197) has issued a profit warning for its unaudited consolidated financial results for the six months ended 31 December 2025. Management expects a decrease in revenue of about 34% and a decrease in gross profit of about 52% compared to the previous corresponding period. The challenging environment was attributed to weak market demand, ongoing uncertainties in global trade policies, intensified market competition, and rising sourcing costs.

Despite the reductions in revenue and gross profit, the net loss for the period is anticipated to be around HK$33.40 million, marking a 13% decrease from the previous corresponding period. The improvement in net loss reflects a net fair value gain on investments of approximately HK$3.80 million, alongside successful cost-cutting efforts, which together lowered the selling, distribution, and administrative expenses by around 19%. However, an expected total impairment on trade and other receivables of roughly HK$5.70 million will weigh on the interim results.

The financial figures have not been confirmed by the audit committee and may be subject to adjustments. A formal results announcement is planned for release before the end of February 2026.